On the heels of recent guidance about security token regulations from the SEC, TokenSoft, Inc., the leading digital asset issuance and management platform, today announced that it no longer restricts clients to use one of its previously vetted and approved law firms.
“When we launched TokenSoft, we were well aware that the legal landscape was new to blockchain-based issuances of securities. In order to mitigate legal risks, we decided to perform due diligence on a select group of law firms that shared our conservative view that digital assets should follow securities regulations,” said Mason Borda, CEO, TokenSoft.
“In retrospect, doing this helped protect our clients and encouraged them to take a more conservative approach, which has paid off given that the regulators now echo much of this sentiment. When issuers come to us today as their technology partner for a compliant issuance, they typically have already engaged a law firm for their project, and if their counsel carries the SEC’s perspective, we don’t want to be a reason for changing that important relationship.”
The SEC recently issued the Framework for ‘Investment Contract’ Analysis of Digital Assets, which gave the market more specific guidance from which to work. In addition, most larger global law firms have created blockchain practices with attorneys with pedigrees in traditional financial securities, banking, and tax regulation. TokenSoft’s sense is that market participants, including legal advisers, are now commonly taking the position that tokens are regulated instruments. The market also has the benefit of seeing an increasing number of use cases from which to learn.
“For our business, this means that we are less concerned that attorneys may allow their clients to adopt an interpretation of the regulations which carries higher risk. Now, we can serve a broader client base due to this common understanding that comes from clearer regulatory guidance.”
As 2019 progresses, TokenSoft is seeing steady interest from institutions and enterprises looking to issue asset-backed tokens or digital securities. If you’re a law firm working with issuers of digital assets and would like to learn more about how TokenSoft can help issuers adhere to applicable regulations, please reach out at https://www.tokensoft.io.
SOURCE TokenSoft, Inc.